Vietnam: Suspension period of derivative trading activities of trading members

Under Clauses 1 and 2, Article 19 of Circular 58/2021/TT-BTC on the suspension of activities of trading members in Vietnam:

1. The Vietnam Exchange shall suspend a part or all of derivative trading activities of trading members in the following cases:

a) The trading member’s derivative brokerage or derivative proprietary trading activities are suspended under SSC’s decision;

b) The trading member’s clearing and settlement for derivative transactions (in case the trading member is also a clearing member) are suspended under VSDCC’s decision;

c) The general clearing member that is providing clearing and settlement services for the trading member has their clearing and settlement for derivative transactions suspended or their membership canceled under VSDCC’s decision (in case the trading member is a non-clearing member);

d) The trading member seriously and systematically violates their obligations as specified in Vietnam Exchange’s regulations;

dd) Other cases specified in Vietnam Exchange’s regulations;

e) Other cases reported by Vietnam Exchange and approved by SSC.

2. The suspension period in the cases specified in Clause 1 of this Article is as follows:

a) With regard to the case specified in Point a Clause 1 of this Article, the suspension period is that of derivative trading activities decided by SSC;

b) With regard to the case specified in Point b Clause 1 of this Article, activities of the trading member shall be suspended until they are allowed to restore their clearing and settlement activities by VSDCC;

c) With regard to the case specified in Point c Clause 1 of this Article, activities of the trading member shall be suspended up to 90 days or until they are provided with clearing and settlement services by another substitute clearing member (whichever comes first);

d) With regard to the case specified in Point d Clause 1 of this Article, the maximum suspension period is 90 days;

dd) With regard to the cases specified in Points dd and e Clause 1 of this Article, the suspension period shall comply with Vietnam Exchange’s regulations.

Respectfully!